UK is a dream destination for Indian students planning to study abroad. More than 538,000 international students are currently enrolled in UK universities. Remarkably, India is the 2nd top country of origin represented within a higher education institution in UK. If you’re too an aspirant seeking admission into UK and feel overwhelmed by the costs of studying in UK, then you are in the right place. Among various financial aid available for international students, an education loan to study within the UK is one of the most popular options.
Nowadays days you can avail study loan for UK at low interest rates with flexible payment plans, easy application process, minimal document requirements and timely approval. Get in touch with loan providers to know about interest rates, repayment plans and amount of loan and prepare a budget of your cost of studying in UK. Go through this guide below to explore the cost of studying in UK, eligibility criteria, requirements for student loan UK, expenses covered by the loan, repayment, loans for Indian students in UK etc.
Why Do You Need a Student Loan for UK?
If you have made up your mind to study in UK, you must be aware that UK is one of the costliest studies abroad destinations. The total cost also includes tuition fees for universities, cost of living, including accommodation, transportation, food, medical costs, and other expenses. You may feel financial constraints if you don’t have your expenses planned.
Mentioned below are some of the top reasons you can opt for student loan in UK:
Interest rates for any loan, such as a home loan, a car loan, a personal loan, and so on, are often greater than on educational loans. In addition, Government banks offer a 0.5% discount to female borrowers.
Tuition costs, transport (tickets), housing rent, university fees, food expenditures, living expenses, laptop, or any other thing required for your education are all covered by a student loan in UK.
Typically, parents liquidate significant assets to cover cost of studying in UK, which disrupts long-term financial plans. When you take out an education loan, banks hold your liquid assets as security, such as FDs, insurance, and government bonds, and issue you a loan based on that security.
Therefore, an education loan is the best alternative to help you cover all your expenses in a safe and timely manner while fulfilling the admission and visa requirements.
A breakdown of cost of living in UK for Indian students
Eligibility Criteria and Requirements to Secure a Student Loan in the UK
Before understanding this process of securing an education loan for UK, let us also look at the eligibility criteria loans for Indian students in UK:
- You must be a resident of India
- The age requirement should be between 18 to 35 years at the time of this loan application
- Have confirmed admission to a popular institution within the UK
- A co-applicant who is either a parent or spouse is required
- Co-applicants should have a stable source of income
What are the Documents Required to Secure for a Student Loan?
To apply for a study loan in the UK, you need the following documents to support your loan application:
- Education loan application form of the bank
- Proof of admission
- Identity proof such as Aadhar Card/ Voter ID/ Passport/ Driving License
- Address proof includes bank statement, ration card, rental agreement, telephone bill or electricity
- Proof of age such as Aadhar Card/ Voter ID/ Driving License/ Passport
- Passport-size photographs
- Proof of income such as salary slips provided at the time of applying for loan
- Financial documents
- Mark sheets from the latest examination such as higher secondary examination or graduation results
- Copy of any scholarship letter
- A detailed list of expenses for studying your chosen course
- Borrower’s bank account statement
- Statement of assets and liabilities of co-borrower
How to Get Loan for Indian Students in UK?
If you are wondering whether you can get loans for Indian students in UK or not, then the answer is a big yes! You can borrow money to pay for fees and living costs at universities in UK. The eligibility for student finance depends on the university, course, age, nationality and whether you have studied a higher education course. Look at the student loan eligibility UK:
- You can apply online for a student loan UK.
- You can avail funding through education loan to study in UK up to 9 months after the start of your academic course.
- The processing time for your application is up to 6 weeks.
- You will have to submit your proof of identity.
- Such a loan is repayable once you start earning a stable income.
- The number of monthly instalments will also depend on your monthly earnings.
Types of Education Loan to Study in UK
There are mainly 2 types of loans for Indian students in UK,
- Collateral Education Loan
- Non-Collateral Education Loan
Let us know more about these two types of students loans in UK:
Secured education loan for UK or secured loan wherein you will have to provide a security or collateral to avail when applying for the loan. The security can be tangible or intangible such as FDs or fixed assets such as property.
Unsecured education loan for UK or unsecured loan which means you do not have to provide any collateral to apply for a loan.
What Expenses Are Covered Under Student Loans in UK?
Take a look at the expenses covered under student loan UK:
- Fees payable to the institution
- Fees related to examination, library membership, laboratory
- Expenses on books and supplies necessary for course completion
- Any refundable deposit for accommodation, caution money, refundable deposit, etc.
- Travel expenses for studying abroad
- Two-wheeler cost up to 50,000 INR
- Expenses on study tour or project work related to the course
Repayment of Student Loan for UK
You must learn about the repayment process for UK education loan for international students before applying for one. We have discussed the repayment plan for education loans for UK in India below:
Loan from a Public Bank: Repayment will commence after completion of one year of your course. Loan can be repaid within 15 years from commencement of repayment.
Loan from a Private Bank: Repayment will commence and continue upto course period +1 year or 6 months after getting a job. Loan can be repaid within 15 years.
Studying in one of the top study abroad destinations like UK is a costly affair. An education loan for UK is a prudent choice to manage your expenses rather than holding back from studying in UK. From the guide above you must have learned about the eligibility, requirements and process to avail student loan UK. There are other ways on how you can finance your education in UK. Just make sure you have all your expenses planned consciously so that you do not have to be burdened by the loan.
Frequently Asked Questions About Student Loan for UK
How much interest will I be charged on student loan UK?
Ans. You can expect to secure an education loan to study in UK from public banks at an interest of 8.85-9.35%. Private banks charge higher rates of interest usually ranging between 10.99-13%.
What factors determine student loan eligibility UK?
The student loan eligibility in the UK depends on certain factors such as the program, choice of institution, academic profile, job profile of the co-borrower, age, nationality and whether you are applying for a secured or unsecured loan.
Can I reapply if my application for student loan UK is rejected?
Yes, you can reapply for a study loan, UK if your application was rejected more than once.
What are the repayment criteria for an education loan to study within the UK?
The general repayment criteria for this education loan to study in UK from a public bank commences after completion of one year of in your course. For private banks, the payment period is in the course period of +1 year or 6 months after getting a job. In some cases, the loan can be repaid within 15 years.
Can I get an education loan without collateral for the UK?
Yes, you can get a loan without collateral in the UK. The amount for an education loan for the UK without collateral is usually up to 750,000 INR and the rate of interest can also be higher.